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When a Company Makes an Adjustment in Anticipation of Future

Question 42

Multiple Choice

When a company makes an adjustment in anticipation of future uncollectible receivables:


A) it debits an asset account and credits a liability account.
B) it debits an expense account and credits an asset account.
C) it debits an expense account and credits a revenue account.
D) it debits an expense account and credits a contra-asset account.

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